1 / Calhoun1 / Calhoun

Global Growth & Emerging Markets

John RiceVice Chairman

President & CEO, GE Infrastructure

GE strategy

+ CFOA

+ Margins

This is the way we win

GE advantage …scale + breadth + depth

Revenue Earnings ROTC

10%+

20%

2-3 x GDP

Safe + reliablegrowth company

• Leadership business … with unique technical + market positions

• Aggressive financial discipline driving high margins + returns

• Innovative corporate initiatives drivingorganic growth

• Vibrant talent + strong team

Focused on faster growth and higher return

• Launch growth platforms … $12B+

• Invest in healthcare, services, energy, infrastructure

• Grow with technology … IGCC, NDT

Focus … long-term growth rateExit … slow growth businesses

'90-'03 '04-’06

Faster growth Industrial

5%

8%

'00 '06E

Higher return Financial

15%

21%

Focus … ROE enhancementExit … Insurance

• Global Consumer Finance

• Financial verticals

• Higher returning businesses

OrganicGrowth rate

ROE

Strategic actions Strategic actions

2-3X GDP

’07+

… with a simplified structure

Industrial

$33B

Healthcare

$15B

NBCU

$15B

Infrastructure

$42B

CommercialFinance

$21B

Consumer Finance

$19B

(‘05 Revenue - $B)

�Market leadership� Domain knowledge

� Technology advantage� Financial strength … AAA

Clear process for growth …

Clear goal: organic growth of 2-3X GDP

Execute forGrowth

Technology/Services

Customers

Globalization

Innovation

Growth Leaders

Commercial Excellence

• Technology leadership … product & service

• Domain expertise … market perspective

• Fulfillment capability … Lean & Six sigma

• Partnerships … customer, supplier & government

• Resources & decision making … with accountability

Globalization enablers …

GE uniquely positioned to serve the global markets

GE competitive strengths

Localized

… for our customers and shareholders

Installed base

CSA / upgrades /inspections & repairs

New growth platforms, customer productivity

Global footprint

Business model to deliver …

Differentiate with technology

Win lifecycle service

System optimization

Everywhere in the world

Clear results … GE

$107

‘01

($ in billions)

Revenue

‘06

Domestic

Developing

~$163

Developing countries doubled in 5 years

Developing

DomesticDeveloped

InternationalInternational

Developed

~41%~45%

Why we feel good …

Strong environment

Positioned to win

Huge growth potential

Already having success

Environment …

Production limited

+150 GW per year

EVO demand strong

CapEx up 30%+

Emerging markets

10%+ growth

Strength across the board

Aviation

Energy

Rail

Oil & Gas

Water

Healthcare

• Leading

technology

• Lifetime

service

• Global

footprint

GEAdvantage

Environment

#1

#1

#1

#1

#2

#1

Position

Developing markets … huge potential

’95 - ’04 ’05 - ’14

Investment

~$900B

~$3T

A priority everywhere

• Population growth and increased living standards fuels growth

• China … Middle East … India … Russia … Eastern Europe … Latin America

Energy

Transportation

Clean Water

Medical

Energy ... Oil & Gas

Aviation ... Rail

Water

Healthcare

Needs GE solutions

Transformation …Global trends

• Population growth

• Resource scarcity & security

• Global trade flow

• Standard of living

• Infrastructure needs

Long term infrastructure development cycle

• Aviation … China backlog at ~2.7B

• Energy … ’06 turbine shipments 85%+ int’l

• Oil & Gas … Downstream 41% of business

• Water … developing markets ~35%

• Healthcare … emerging markets 15% +

• Rail … 44% of ’06 equip orders are int’l

GE

Rail …China

� 300 Mainline deal … $454MM

� Distributed power … $44MM

� 80 OHV AC drive systems … $62MM

Europe

� Signaling Phoenix deal in Italy … $40M

� New energy BioFuel engine LOI … $25M

� Shipping Sheltam Loco’s (S. Africa) … 10 Units

� 30 engines for Power Gen (Sakr) … $12M

CIS Kazakhstan/Russia

� 150 Mods … $113MM

� 310 EVO’s … $654MM

� New OHV OEM for 150T AC truck

Latin America

� 1st EVO’s in Mexico + Svc … $474M

� 30 M&S engines … $12M

� ’07 Loco’s Colombia & MRS … $50MM

India

� Signaling & train control Pipeline … $100M

� 10 Marine engines for ABG … $10M

Africa / Mid East

Winning in global markets

GE – Hitachi Nuclear

Dynamics

� Formalize partnership with long-term BWR strategic ally … Hitachi

� Focus on BWR technology & services; selective PWR activities

� Improve global position … Japan

� Capitalize on favorable economics

• Political environment still uncertain

• Working with several pot’l US partners

• Interest high … India … China … E. Europe

• Evolving consolidation … MHI & Areva … Toshiba + Westinghouse

20060109-7JRI BOD 11-03-06/2

Strong participation & partnership approach

Strategy

Summary …

GE uniquely suited to deliver in the global market

• Tremendous Infrastructure needs created by changing global trends … do not see a slowdown

• Capital there to fund growth … $$ being spent

• GE possesses the “enablers” to global growth

• GE is winning in the global market … will continue to

Agenda

Welcome & overview John Rice

International landscape Nani Beccalli

– GE in China Andy Solem

– GE in India TP Chopra

– Energy Jim Suciu

– Oil & Gas Claudi Santiago

– Water Jeff Garwood

– Healthcare Reinaldo Garcia

– GE Money Dmitri Stockton

Wrap-up/Q&A

Oil & Gas Plant Tour

Lunch

Depart for Airport - Qatar Flight